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TENTATIVE AGREEMENT BETWEEN THE CITY OF REDWOOD C 6.1.13. -Page 15 <br />AND REDWOOD CITY POLICE SERGEANTS ASSOCIATION (PSA) <br />7.2.23 An employee may be eligible for a salary adjustment to the next higher step <br />above the initial step or rate to which appointment was made upon the <br />satisfactory completion of six (6) consecutive months' employment. An <br />adjustment shall be made only upon the recommendation of the department <br />head and upon approval of the City Manager. <br />7.2. Progression of employees from the second step to the third step of the salary <br />plan may be made upon completion of a minimum period of one (1) year at the <br />second step and upon consideration of such employee's performance of duties, <br />experience, education, personal fitness for the position, and other criteria <br />reasonably related to awarding increased compensation on the basis of merit. <br />An adjustment shall be made only upon the recommendation of the department <br />head and upon approval of the City Manager. <br />7.2. Progression of an employee from the third step to the fourth step and the fourth <br />step to the fifth step of the salary plan will be based upon the completion of the <br />period of one (1) year's service at the respective lower step. <br />7.18 Deferred Compensation <br />Effective with the first full pay period on or after September 1, 2003, the City shall <br />contribute an amount equal to two percent (2 %) of base monthly salary to a deferred <br />compensation plan offered by the City. Effective September 1. 2011. the City's current <br />contribution towa deferred compensation equal to two percent (2 %) of base monthly <br />salary shall end and an equal 2% increase shall be made to base monthly salary. <br />SECTION 10. HEALTH PLANS <br />June 3, 2011 — City <br />Page 4 <br />